If you have a flexible spending account through work, there's a decent chance a few hundred dollars are sitting in it right now with an expiration date attached.
Use it or lose it is the general rule, and the clock is running out for millions of workers on calendar-year plans.
The average participant forfeits somewhere between $100 and $500 annually, according to benefits industry estimates, which adds up to billions of dollars left behind every year.
The deadline itself depends on your employer, and that's where people get tripped up.
Most plans wrap up on December 31, but some offer a grace period into mid-March, and others allow a carryover of a limited amount into the next year.
You can't assume your plan matches your coworker's, your spouse's, or whatever you read online.
Log into your benefits portal this week and check three things: your balance, your official deadline, and whether your plan has a grace period or carryover.
Healthcare FSAs cover more than most people realize.
Prescription glasses and contacts, dental cleanings and fillings, hearing aids, bandages, thermometers, acne treatments, sunscreen with SPF 15 or higher, and menstrual products all qualify.
So do many over-the-counter medicines now that the CARES Act removed the old prescription requirement.
If you've been putting off new glasses or a dental crown, December is the moment to schedule it.
Dependent care FSAs are a different animal with the same urgency.
These accounts cover daycare, after-school programs, day camps, and even some summer camp costs for kids under 13.
If you've been paying a babysitter or an after-school program out of pocket, you may be able to submit those receipts for reimbursement before the funds vanish.
Just remember that dependent care funds typically have no grace period at all in many plans.
A few smart moves can drain the balance fast.
Book that eye exam and order a year's supply of contacts.
Refill prescriptions early if your plan allows it.
Stock up on eligible first-aid and health items through an FSA store, which labels everything so you don't have to guess.
Some retailers like Amazon, Walmart, and Walgreens let you filter search results by FSA eligibility, and many cards work directly at checkout.
One warning worth repeating: don't panic-buy random stuff just to spend the money.
Ineligible purchases can get flagged, and you'll end up paying the money back plus taxes.
Focus on things you'll actually use in the next twelve months.
Also check whether your employer offers a run-out period, usually 90 days after the plan year ends, which gives you extra time to submit receipts for expenses you already paid.
If you're nowhere near spending the balance and the deadline is days away, call your benefits administrator.
Some employers allow a one-time exception, and it costs nothing to ask.
The worst outcome is doing nothing and watching the money disappear.
The real lesson here is bigger than one December scramble.
If you forfeit money every year, your election amount is probably set too high.
During open enrollment, estimate your true annual health costs and contribute closer to that number.
Final Thoughts
An FSA is a tax break, not a savings account, and treating it like one is how people quietly lose hundreds of dollars year after year.